Milan-based Lexroom.ai, an AI tech scale-up focused on the legal industry, has secured €2M in a seed round of funding. The proceeds will support product development and talent recruitment as the Italian company builds an AI team in Europe and expands into other markets.
Belgian B2B SaaS investment firm Entourage led the round. Other investors include Verve Ventures, Vento Ventures, Banyan Ventures, and X-Equity advised by FNDX, and angel investors such as Joe Zadeh, former VP of Product and Head of Experiences at Airbnb.
This financing round follows a €500K pre-seed investment secured less than a year ago.
Transforming legal workflows
Lexroom.ai, an AI-driven legal research platform, was founded in 2023 by Paolo Fois, Martina Domenicali, and Andrea Lonza within Vento Ventures.
The platform allows users to ask legal questions in natural language and receive responses with citations and sources. It is developed in collaboration with law firms.
Lexroom.ai provides tools for legal research, document analysis, and automated drafting of legal briefs and contracts. The company partners with firms such as Gatti Pavesi Bianchi Ludovici for corporate law, Ichino Brugnatelli & Associati for labor law, and WST Law & Tax Firm for tax law.
With its latest funding, Lexroom.ai aims to accelerate its mission of transforming the legal industry through AI innovation.
Co-founder Fois says, “Since our journey began at Vento Ventures’ venture originator in 2023, our vision has been to empower legal professionals by optimising their most valuable resource: time.”
“The arrival of investors like Entourage and Verve Ventures will allow us to grow our team and continue our dedication to service all professionals in the highly fragmented legal services market, aiming to become the go-to AI platform for law firms of all sizes.”
Lexroom.ai claims to have grown to nearly 1,500 professional users, including individual legal practitioners and law firms, with most users logging in daily. The company has reached around €1M in annual recurring revenue (ARR) with a team of 15 employees.
Capital utilisation
Lexroom.ai plans to use the proceeds to expand its product to more law firms, including individual legal professionals, and strengthen its presence in Southern Europe.
The company aims to grow its AI development team in Europe, increasing its workforce to 35 employees by year-end, with over half focused on product development.
Pieterjan Bouten, founder and GP at Entourage, says, “Lexroom.ai is addressing a critical pain point for lawyers, rapidly becoming an indispensable tool for legal professionals. The speed at which Lexroom is scaling and the product usage metrics are a testament to the urgent need for its solutions and the strength of its execution.”
“We are thrilled to support Lexroom’s exponential growth and witness its transformative impact on the legal sector.”
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